Business Leader Calls for Urgent Intervention to Stabilize Yen to Dollar Exchange Rate

After warning about the devastating effects that the yen’s depreciation has caused in the business sector, Ken Kobayashi, President of the Japan Chamber of Commerce and Industry (JCCI), has called for more decisive government actions this week to stabilize the yen-to-dollar exchange rate. According to Jin10 reports, Kobayashi warned that the current exchange rate not only threatens the competitiveness of companies but also the country’s ambitious wage increase plans.

Small Businesses Face Growing Pressure from Currency Fluctuations

The organization led by Kobayashi represents over 1.2 million small businesses across Japan, making his statements a direct reflection of the challenges faced by the country’s business fabric. According to a survey conducted by JCCI, an exchange rate close to 130 yen per dollar would be the most favorable level to maintain the viability of these companies. However, the current market volatility is significantly away from this target, creating uncertainty in medium-term business decisions and investments.

Market Speculation Worsening Yen-to-Dollar Instability

Kobayashi has identified market speculation as the main driver behind recent fluctuations in the yen-to-dollar exchange rate. According to his analysis, sharp movements—such as the shift from 159 to 152—do not respond to solid economic fundamentals but to speculative dynamics that require immediate intervention. This speculative volatility has eroded business confidence and complicated financial planning for organizations already facing reduced operating margins.

Call for a Full Range of Intervention Tools

The business leader has urged the Japanese government to implement a comprehensive package of measures including direct intervention in currency markets, adjustments to interest rate policies, and coordinated verbal communications to counteract speculation. While he recognizes that the government has recently made some efforts to curb the yen’s decline, Kobayashi considers these actions insufficient given the magnitude of the problem affecting millions of small businesses. Intervention must be more aggressive and coordinated to effectively stabilize the yen-to-dollar relationship and enable companies to execute their growth strategies with greater predictability.